ANNUAL REPORT 01.01.2018 to 31.12.2018 CENTRAL VIGILANCE COMMISSION Annual Report 2018 i Shri K.V. Chowdary Central Vigilance Commissioner Dr. T.M. Bhasin Shri Sharad Kumar Vigilance Commissioner Vigilance Commissioner ii Annual Report 2018 The 55th Annual Report of the Central Vigilance Commission is prepared under Section 14 of the CVC Act, 2003 for submission to the President of India. The report highlights the work done by the Central Vigilance Commission during the year ending 31st December, 2018 in fulfilling its mandate under the CVC Act, 2003. (K.V. CHOWDARY) CENTRAL VIGILANCE COMMISSIONER (Dr. T.M. BHASIN) (SHARAD KUMAR) VIGILANCE COMMISSIONER VIGILANCE COMMISSIONER New Delhi Dated: the 6th June, 2019 Annual Report 2018 iii ACKNOWLEDGEMENT The Central Vigilance Commission thanks the Government of India, its Ministries/Departments, Public Sector Undertakings, Public Sector Banks and other organizations, the team of Chief Vigilance Officers, Central Bureau of Investigation, Law Officers, the Whistle Blowers and all others connected with the Commission for their cooperation and assistance. iv Annual Report 2018 CONTENTS Chapter Description Pages 1 Mandate of the Commission 1-9 2 Commission’s Activities during 2018 11-29 3 Superintendence over Vigilance Administration 31-45 4 Non-Compliance of Commission’s advice and other Areas of Concern 47-92 5 Chief Technical Examiners’ Organisation 95-98 6 Superintendence over Central Bureau of Investigation 101-113 7 Preventive Vigilance and Systemic Improvements 115-141 8 Participative Vigilance and Vigilance Awareness Week 143-151 9 Knowledge Management and Capacity Building 153-158 APPENDIX I Group wise Staff Strength and related information, as on 31.12.2018 in 162 CVC II Organization-wise details of prosecution sanctioned and penalty 163-169 imposed during 2018 in respect of cases where Commission’s Advice was obtained III Work done by CVOs in 2018 170-202 IV Organisation-wise list of complaints referred by Commission and pending 203-209 with CVOs for Inquiry and Report as on 31.12.2018 V Organization-wise list of first and second stage advice pending for 210-219 implementation of Commission’s advice VI Some prima-facie irregularities observed in course of Intensive 220-229 Examinations and scrutiny of various procurement cases during the year VII Cases arising out of Intensive Examination/Inquires which got converted 230-233 into Detailed Vigilance Investigations (DVI) VIII System improvements undertaken by Public Sector Units, based on 234-235 CTEO’s advice Annual Report 2018 v Function of Vigilance Awareness Week 2018 vi Annual Report 2018 ANNUAL REPORT 2018 AN OVERVIEW l Central Vigilance Commission is the apex integrity institution of India, created in 1964 to address governmental corruption. It has the mandate under the Central Vigilance Commission Act, 2003 (45 of 2003) to fight corruption and to ensure integrity in public administration. It has the status of an autonomous body, free of control from any executive authority, charged with monitoring all vigilance activity under the Central Government and advising various authorities in Central Government and organisations under it, in planning, executing, reviewing and reforming their vigilance work and bring out systemic improvement in governance. (Para 1.1) l The Central Vigilance Commission Act, 2003 provides for constitution of Central Vigilance Commission to inquire or to cause inquiry or investigation into offences alleged to have been committed under the Prevention of Corruption Act 1988 (49 of 1988) by certain categories of public servants of the Central Government, Corporations established by or under any Central Act, Government companies, societies and local authorities owned or controlled by the Central Government. The Act also empowers the Commission to exercise superintendence over the functioning of the Central Bureau of Investigation (CBI), insofar as it relates to the investigation of offences alleged to have been committed under the Prevention of Corruption Act, 1988. (Para 1.7) l The Lokpal and Lokayuktas Act, 2013 has amended some provisions of CVC Act, 2003 and the Commission has been empowered to conduct preliminary inquiry into complaints referred by Lokpal in respect of officers and officials of Groups B, C & D, besides Group A officers. (Para 1.8 & 1.9) l The Whistleblowers’ Protection Bill, 2011 passed by Parliament, received the assent of the President and has been enacted as Whistle Blowers Protection Act, 2011 (No. 17 of 2014). (Para 1.17) l All departments/organisations under Commission’s jurisdiction have vigilance units headed by Chief Vigilance Officers (CVO). The CVOs act as an extended arm of the Commission. There are 195 posts of full time CVOs and 499 posts of part time CVOs of which 50 posts of full time CVOs were lying vacant on 31.12.2018. ( Para 1.27) l The Commission has been implementing a multi-pronged strategy to combating corruption, which encompasses preventive, punitive and participative vigilance measures. These are Annual Report 2018 vii not mutually exclusive but are complimentary and are important elements within the broader approach for combating corruption. (Para 2.3) l The Commission recommended initiation of criminal proceedings in 49 cases during 2018. (Para 2.19 & 2.20) l The Commission tendered advices in 3162 cases during the year 2018. These include Commission’s advice of initiation of major penalty proceedings in 508 cases and minor penalty proceedings in 151 cases as its first stage advice. Similarly, Commission advised imposition of major penalty in 101 cases and minor penalty in 76 cases as second stage advice. (Paras 2.16, 2.19, 2.20 & 2.21) l The Commission received 33645 complaints (including complaints brought forward from 2017 ) during 2018. The Commission received a considerable number of complaints against public servants working in the state governments and other organisations who do not come under the jurisdiction of the Commission or which are of administrative nature. (Paras 2.32 & 2.34) l During the year 2018, vigilance clearances were processed and issued by the Commission for the Board level appointments in 588 cases. Vigilance clearance was also provided by the Commission in respect of 2413 officials of the All India Services and other Services for empanelment to the posts of Joint Secretary and above in the Central Government and for appointments to certain Statutory Posts under the Central Government . ( Para 2.41) l During the year 2018, penalties were imposed in 17341 cases (for all categories of officers) dealt with by the CVOs. Further, major penalty was awarded in 5595 cases and minor penalty was awarded in 11746 cases. (Para 3.17) l Shri K.V. Chowdary, Central Vigilance Commissioner attended the seventh session of the Assembly of Parties (AoP) to International Anti Corruption Academy (IACA) at Vienna, Austria on 27th and 28th September 2018. (Para 2.44) l Smt. Archana Varma, Additional Secretary, CVC attended the 9th Session of the Implementation Review Group at UNODC, in Vienna, Austria on 4th to 6th June, 2018. (Para 2.44) l Shri P. Daniel, Additional Secretary, CVC attended 2nd Meeting of the Anti Corruption Working Group of the G-20 Countries at Paris, France on 27th and 28th June, 2018. (Para 2.44) viii Annual Report 2018 l The Vigilance Awareness Week was observed from 29th October to 3rd November, 2018 with the theme “Eradicate Corruption-Build a New India (Hkz"Vkpkj feVkvks&u;k Hkkjr cukvks)”. All PSUs / Public Sector Banks / Ministries / Departments, etc. conducted activities within their organisations as well as outreach activities for the public on a large scale. The thrust during Vigilance Awareness Week had been on outreach activities which included publicizing the Integrity e-Pledge and conducting Awareness Gram Sabhas and Awareness Campaigns in schools and colleges. (Para 8.11 & 8.13 ) l The Commission envisaged a concept of “Integrity Pledge” to enlist support and commitment of the citizens and organisations for upholding the highest standards of ethical conduct, honesty and integrity. In 2018, the Commission decided to have a common Integrity Pledge during VAW 2018 for citizens as well as public servants. As on 31.12.2018 approximately 70.5 lakh citizens and around 94118 organisations have taken the e-pledge online. (Para 8.14) l “Awareness Gram Sabhas” were organized where short plays, nukkad nataks, display of posters and screening of films etc., were made for dissemination of awareness in Gram Panchayats to sensitize citizens on the ill effects of corruption this year. In 2018, more than 73,655 Gram Sabhas were organized during the Vigilance Awareness Week. (Para 8.15) l The outreach activity focusing on inculcating greater awareness on corruption and anti- corruption measures were also held in colleges and schools including professional colleges/ institutions across the country. Activities in schools / colleges across the country in over 550 cities and towns during the week reached out to several lakh youth. (Para 8.16) l His Excellency, Shri Ram Nath Kovind, the Hon’ble President of India was the Chief Guest for the Vigilance Awareness Week Function held at Vigyan Bhavan on 31st October 2018. Dr. Jitendra Singh, Hon’ble Minister of State for the Prime Minister’s Office and Minister of State for Personnel, Public Grievances and Pensions was the guest of honour at the function. (Para 8.18 to 8.22) l The Commission obtains data related to Preliminary Enquiries (PEs) and Registered Cases (RCs) in the format prescribed by it from CBI every month. During the year 2018, the Commission held monthly review meetings with CBI, wherein cases against senior officers of the Government, executives of banks/public sector enterprises and politicians were reviewed. (Para 6.6 & 6.7) l The Commission reviews the progress of cases pending for sanction of prosecution with various organisations, under the PC Act, 1988. CBI reported that at the end of the year 2018, 129 cases were pending for grant of sanction for prosecution under PC Act, 1988.